Stocks faced early downward pressure on Tuesday, but they've since rebounded as the trading day progressed. The Nasdaq and S&P 500 have managed to climb back into positive figures after initial setbacks.
As of now, the stock indexes are displaying a mixed performance. The Dow Jones Industrial Average has slipped by 179.71 points, or 0.4%, to stand at 43,209.89. Conversely, the S&P 500 has risen slightly by 2.08 points to 5,895.70, and the Nasdaq has gained 75.42 points, or 0.4%, reaching 18,867.23.
The day's early weakness in equity markets was fueled by growing concerns over heightened tensions between the U.S. and Russia. This follows President Joe Biden’s decision to authorize Ukraine's use of U.S.-manufactured long-range missiles against Russian targets, which prompted Russian President Vladimir Putin to alter the nation's nuclear doctrine.
Kremlin spokesperson Dmitry Peskov noted the revised doctrine allows for nuclear weapon usage if conventional weapons aggression threatens Russia or Belarus's sovereignty or territorial integrity. Furthermore, Peskov stated that non-nuclear aggression supported by a nuclear state qualifies as a combined assault, per NBC News reports.
Before Russia's nuclear policy adjustments, Ukraine reportedly employed U.S.-supplied long-range missiles to strike a Russian facility within the Bryansk border region.
Despite the initial selling pressure, the market began recovering shortly after opening. Nvidia's (NVDA) stocks, in particular, have significantly contributed to the Nasdaq's recovery, climbing by 2.8% ahead of anticipated fiscal third-quarter results set for release on Wednesday post-market closure.
Walmart (WMT) has also seen appreciable gains following third-quarter earnings that surpassed expectations, alongside an updated, optimistic full-year financial outlook. In contrast, Lowe's (LOW) shares have notably declined due to a projection of reduced full-year sales, despite exceeding third-quarter earnings expectations.
**Sector Performance**
Computer hardware stocks are continuing their upward trajectory from previous sessions, propelling the NYSE Arca Computer Hardware Index 2.7% higher, offsetting a two-month low reached last Friday. Super Micro Computer (SMCI) is prominently advancing in the sector, underscored by its appointment of BDO as an independent auditor and a compliance plan submission to Nasdaq.
Conversely, airline stocks have experienced a sharp downturn, resulting in a 3.5% descent of the NYSE Arca Airline Index.
**Global Markets**
In international markets, the Asia-Pacific region saw mostly upward trends on Tuesday. Japan’s Nikkei 225 Index gained 0.5%, and China’s Shanghai Composite Index rose by 0.8%.
Meanwhile, European markets faced declines; the U.K.'s FTSE 100 Index dropped by 0.3%, France’s CAC 40 Index fell by 1.0%, and Germany’s DAX Index decreased by 1.1%.
In the bond market, U.S. Treasuries have retreated from earlier highs but remain positive. Consequently, the yield on the ten-year Treasury note, which inversely affects its price, has decreased by 3.9 basis points to 4.375%.